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Countrywide's Errors Could Cost BofA Billions

Testimony in a New Jersey foreclosure case decided last week may spell big trouble for Bank of America. If what one bank employee said on the stand proves to be accurate, paperwork problems it acquired when it purchased mortgage provider Countrywide could leave BofA on the hook for billions.

The New Bank Stress Tests Show Just How Serious the Mortgage Mess Is

This week, the Congressional Oversight Panel recommended that the nation's big banks be stress tested again, because if problems with mortgage-backed securities are widespread, the consequences could be dire. Now, the Fed has agreed to run those tests, which it wouldn't do if it wasn't worried.